To Arrive at an Accurate Balance on a Bank Reconciliation

question 28

Multiple Choice

To arrive at an accurate balance on a bank reconciliation statement,a credit memorandum from the bank for the collection of a note and interest should be

• A) added to the bank statement balance.
• B) added to the book balance.
• C) deducted from the bank statement balance.
• D) deducted from the book balance.

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Definitions:

Loans Payable

Obligations of a company to repay borrowed money in the future.

Impaired

A term used to describe an asset whose market value has decreased below its book value on the balance sheet.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its tangible and identifiable intangible assets.

Consolidated

Combines the financial statements of the parent company and its subsidiaries into one comprehensive financial statement, presenting the financial performance and position as a single entity.